ICICI Prudential PMS Contra Portfolio€¦ · Global Indices Performance – India surges ahead •...
Transcript of ICICI Prudential PMS Contra Portfolio€¦ · Global Indices Performance – India surges ahead •...
ICICI Prudential PMS Contra Portfolio A series under “Deep Value" Portfolio
All data/information used in the preparation of this material is dated and may or may not be relevant any time after the issuance of this material. ICICI Prudential Asset Management Company Limited (the
Portfolio Manager/ the AMC) takes no responsibility of updating any data/information in this material from time to time. The recipient of this material is solely responsible for any action taken based on this
material. The information contained herein are strictly confidential and are meant solely for the benefit of the addressee and shall not be altered in any way, transmitted to, copied or distributed, in part or in
whole, to any other person or to the media or reproduced in any form, without prior written consent of the AMC. Further, the information contained herein should not be construed as forecast or promise. Past
performance of the Portfolio Manager may not be indicative of the performance in the future. Please refer to page 26 & 27 for risk factors and disclaimers.
Global Indices Performance – India surges ahead
• Indian markets rose by 7.8%
on the back of increased FII
flows to the tune of Rs. 33,116
Crs
• With China markets
experiencing a slowdown last
year, the economy is gradually
reviving owing to monetary
expansion policies and heavy
infrastructure investments
thus aiding growth
Germany - DAX Index; China - SSE Composite Index; France - CAC 40 Index; Japan - Nikkei; Eurozone - Euronext 100; Hong Kong - HangSeng; US - Dow Jones; Singapore - Strait Times; Russia - RTS Index; Indonesia - Jakarta Composite Index; U.K. - FTSE; South
Korea - Kospi; Brazil - Ibovespa Sao Paulo Index; Indonesia – Jakarta Composite Index; Switzerland – Swiss Market Index; Taiwan – Taiwan Stock Exchange Corporation; India – S&P BSE Sensex; Returns in % terms. Data Source: MFI; Returns are absolute returns for
the PRI variant of the index calculated between Feb 28, 2019 – March 29, 2019. Past performance may or may not be sustained in future
7.8
5.1
2.9 2.8 2.3 2.1
1.5 0.9 0.8
0.4 0.1 0.0 0.0
-0.2 -0.8
-2.5 -4
-2
0
2
4
6
8
10
India
Chin
a
UK
Taiw
an
Europe
Fran
ce
Hong K
ong
Sw
itzerla
nd
Russia
Indo
nesia
Germ
any
US
Sin
gapore
Brazil
Japan
South K
orea
Returns (
%)
Returns Performance - March 2019
Sectoral Indices Performance
All indices are of S&P BSE and carry the prefix of S&P BSE; Abbreviated CD - S&P BSE Consumer Durables; CG - S&P BSE Capital Goods; FMCG - S&P BSE Fast Moving Consumer Goods; HC - S&P BSE Health Care; Infra. - S&P BSE India Infrastructure; IT - S&P
BSE Information Technology, NBFC – Non-banking Finance Companies. Data Source: MFI; Returns are absolute returns for the PRI variant of the index calculated between Feb 28, 2019 – Mar 31, 2019; Past performance may or may not be sustained in future
NPA: Non Performing Assets. The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and portfolio may or may not have any future positions in these stock(s)/Sector(s).
• Majority sectors ended
on a positive note
• Banking outperformed
on the back of NPA
issues moderating and a
strong earnings outlook
15.7
13.7 12.8 12.6
11.4 11.3 10.9 10.9
8.4 8.1
5.5 4.7
4.1 3.4
0.2 0.1
0
2
4
6
8
10
12
14
16
18R
ealt
y
Ban
kex
In
fra
Fin
an
ce
CD
Po
wer
Energy
Oil &
Gas
Basic
Materia
ls
CG
Metal
HC
Tele
com
FM
CG IT
Au
to
Returns (
%)
Returns Performance - March 2019
RESERVE BANK OF INDIA
• India’s GDP growth estimates for FY 2018-19 revised
downwards to 7.0% from 7.2% earlier
• RBI cut repo rates by 25 bps to 6.0% to support
growth and meet inflation target of 4%
Global Growth Concerns
Uncertainty about growth weighed on the minds of central banks everywhere resulting in them adopting a cautious stance.
US FEDERAL RESERVE BANK
• The Fed lowered its GDP
growth forecast (2.1% to
2.3% earlier for 2019) &
inflation expectations
• Adopted a dovish stance of
not hiking rates further in
2019
EUROPEAN CENTRAL BANK
• Weakening economic data
points to a sizeable
moderation in pace of
economic expansion &
underlying inflation continues
to be muted
• Interest Rates to remain
unchanged throughout 2019
Source: RBI, European Central Bank, US Federal Reserve Monetary Policy Meet Minutes
Growth Numbers
Change in US Fed Stance and Opinion Poll Comfort led to record FPI flows (best since March-16). Going forward, FPI
flows could get volatile depending on stability of the new government and Global Central Bank Policies
Source: SEBI, BSE, CDSL, Morgan Stanley Research; Data as of March 31, 2019. FPI: Foreign Portfolio Investor.
21,143
-18,244
30,906
11,654
-28,921
33,981
-40,000
-30,000
-20,000
-10,000
0
10,000
20,000
30,000
40,000
Mar-16
Sep-16
Mar-17
Sep-17
Mar-18
Sep-18
Mar-19
FP
I F
low
s (
In I
NR
Crs.)
FPI Equity Flows (INR Crs)
Presenting
ICICI Prudential PMS Contra Portfolio A series under “Deep Value" Portfolio
Contrarian Investing: How it works?
Out of the Flavour: Investing into
companies where prevailing
sentiments are not positive. Contrarian
Investing
Focus: Widespread pessimism
about a company can drive prices
low. Prices tend to overstate the
risk and understate the prospects
of recovery.
Avoids: Widespread optimism results in
high valuation that may lead to correction
when valuations are not justified by
fundamentals.
7
The aforesaid points are only indicative. There may be other factors that may be relevant for identification of a contrarian investing opportunity.
Why Contrarian Investing works?
Herd Behaviour
Prices of stocks are pushed
by investors to
unsustainable levels in both
direction.
Over reaction by market
participants leads to
underperformer become
under valued and
outperformer become over
valued.
Market Efficiency
Prices follow a random
walk, though when prices
fluctuates to extremes, they
are generally brought back
to equilibrium in time.
Investor behaviour causes
market to deviate from
fundamental values
creating inefficient markets.
8
Performance of Sectors: Contrarian Opportunities
Source: MFI Explorer, Edelweiss Research. Returns of Auto are of :S&P BSE AUTO, Bankex: S&P BSE Bankex, FMCG:S&P BSE FMCG, CG(Capital Goods): S&P BSE CG, IT: S&P BSE IT, Metal: S&P
BSE METAL, HC: S&P BSE HC, CD(Consumer Discretionary): S&P BSE CD, Oil & Gas: S&P BSE Oil & Gas, Power: S&P BSE Power, Telecom: S&P BSE Telecom. Returns are of calendar year and
are in absolute terms. Past Performance may or may not sustain in future. 9
The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and portfolio may or may not have any future positions in these stock(s)/Sector(s).
Source: Internal. Past Performance may or may not sustain in future. Prices Rebased at 100
METAL
234%
CD
68%
FMCG
10%
Bankex
57%
IT
60%
Bankex
65%
CD
24%
METAL
37%
CD
102%
IT
26%
AUTO
204%
AUTO
38%
HC
-13%
FMCG
47%
HC
23%
CD
66%
HC
15%
Oil & Gas
27%
Telecom
49%
FMCG
15%
IT
133%
HC
34%
IT
-16%
CD
46%
Telecom
18%
AUTO
52%
IT
5%
AUTO
9%
METAL
48%
BANKEX
6%
CG
104%
Bankex
33%
Telecom
-16%
AUTO
40%
FMCG
11%
CG
50%
Telecom
3%
BANKEX
7%
CG
40%
CG
-1%
CD
98%
IT
32%
CD
-17%
HC
39%
AUTO
7%
HC
47%
FMCG
1%
FMCG
3%
BANKEX
39%
HC
-6%
Bankex
84%
FMCG
32%
AUTO
-20%
CG
35%
Oil & Gas
4%
Power
23%
AUTO
-1%
Power
2%
Oil & Gas
34%
Power
-15%
Power
74%
CG
9%
Oil & Gas
-29%
METAL
19%
CG
-6%
FMCG
18%
Oil & Gas
-3%
CG
-3%
FMCG
32%
CD
-15%
Oil & Gas
73%
Telecom
2%
Bankex
-32%
Oil & Gas
13%
Bankex
-9%
IT
17%
Power
-6%
CD
-6%
AUTO
32%
Oil & Gas
-16%
Health Care
69%
Oil & Gas
1%
Power
-40%
Power
11%
METAL
-12%
Oil & Gas
12%
CG
-9%
IT
-8%
Power
20%
METAL
-21%
FMCG
40%
METAL
1%
CG
-48%
IT
-1%
Power
-15%
Telecom
9%
Bankex
-10%
HC
-13%
IT
11%
AUTO
-21%
Telecom
-7%
Power
-6%
METAL
-48%
Telecom
-3%
CD
-25%
METAL
8%
METAL
-31%
Telecom
-21%
HC
0%
Telecom
-40%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Broad Investment Process
10
The investment process mentioned above are indicative in nature. There may be other investment process for stock selection.
Identification:
Identification of sectors or
companies which are facing
temporary headwinds.
Selection
Criteria:
Parameters such as ROE,
ROCE, Market Cap by Cash
Profit, P/E, Corporate
Governance & Capital
Allocation Track Record are
used to determine
investability.
Portfolio
Construction:
Basis results of screeners,
the portfolio is constructed
by choosing
sectors/companies which
are facing temporary stress
and are expected to survive
in long run.
Contrarian Investment: Investing in ‘’Out of the flavour’’
FMCG Sector underperformed during 2006-07 Phase Valuation: Lower than their long term average
90
110
130
150
170
190
210
Jan/2006 Jul/2006 Jan/2007 Jul/2007
Nifty 50 S&P BSE FMCG
Dec-2007
15
20
25
30
35
40
45
Jan/2006 Jul/2006 Jan/2007 Jul/2007
S&P BSE FMCG P/E Ratio
Dec-2007
11
The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and portfolio may or may not have any future positions in these
stock(s)/Sector(s). Source: Internal. Past Performance may or may not sustain in future. Prices Rebased at 100
Pric
e M
ovem
en
t. R
e-B
ased
at 100
Contrarian Investment: Investing in ‘’Out of the flavour’’
75.3
169.9
35
55
75
95
115
135
155
175
195Nifty 50 S&P BSE FMCG
Investing Out of the
flavour may help
limiting downside
Captured Upside
Out of the flavour
investment aims to
provide margin of
safety.
Nifty 50 fell by 59%
while S&P BSE FMCG
fell by 28%.
In recovery phase S&P
BSE FMCG captured
the upside.
Since Jan 2008 till Dec 2011 Nifty 50 delivered -6.9% CAGR against S&P BSE FMCG Index delivered 14.18% CAGR.
12
The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and portfolio may or may not have any future positions in these
stock(s)/Sector(s). Source: Internal. Past Performance may or may not sustain in future.
Pric
e M
ovem
en
t. R
e-B
ased
at 100
Contrarian Investment: Investing in ‘’Out of the flavour’’
Since Jan 2014 till Dec 2015 Nifty 50 delivered 12.31% CAGR against Nifty Midcap 100 index delivered 28.54% CAGR.
-25%
-20%
-15%
-10%
-5%
0%
5%
10
11
12
13
14
15
16
17
18
Spread Midcap PE NIFTY 50 PE
123.17
164.47
80.00
100.00
120.00
140.00
160.00
180.00
Jan
/20
14
Feb
/20
14
Mar/2
01
4
Ap
r/201
4
May/20
14
Ju
n/2
014
Ju
l/201
4
Au
g/2
01
4
Sep
/20
14
Oct/201
4
No
v/201
4
Dec/2
014
Jan
/20
15
Feb
/20
15
Mar/2
01
5
Ap
r/201
5
May/20
15
Ju
n/2
015
Ju
l/201
5
Au
g/2
01
5
Sep
/20
15
Oct/201
5
No
v/201
5
Dec/2
015
NIFTY 50 NSE Midcap 100
Midcap valuation at discount compared to Large caps Midcap Index performance against Large caps
13
The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and portfolio may or may not have any future positions in these
stock(s)/Sector(s). Source: Internal. Past Performance may or may not sustain in future.
Pric
e M
ovem
en
t. R
e-B
ased
at 100
Contrarian Investment: Investing in ‘’Out of the flavour’’
From Jan 2018 to 31st July 2018, a leading IT company delivered 32% absolute return in 2018 YTD against 26% of Nifty IT
index and 8.8% of Nifty 50 Index.
Valuation in IT sector went from premium to discount
compared to broad market. Stock Price movement of Leading IT company
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
0
5
10
15
20
25
30
Spread NSE IT Index PE NIFTY 50 P/E
873.4
1365.1
800
900
1000
1100
1200
1300
1400
1500
56.3%
Unfavourable business
cycle, strong rupee and
management issues
14
The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and portfolio may or may not have any future positions in these
stock(s)/Sector(s). Source: Internal. Past Performance may or may not sustain in future. Performance as on 31st July 2018
Contrarian Investment: Opportunities
High Entry Barriers:
Unfavourable business cycle
Consolidation in Industry Special Situations
• Industry challenges
leading to reduction
in players.
• Company with strong
balance sheet and
successful execution
in the last cycle can
emerge stronger and
bigger.
• Distress exits can
create opportunity for
existing players to
consolidate.
• Companies enjoying
Moats.
• Strong competitive
advantage.
• Competitive advantage
due to product, pricing,
service, distribution
network , favourable
infrastructure and
logistics network.
• Mergers
• Acquisitions
• Holding – Subsidiary
company, reduction
in discount.
• Product or
department spin offs.
15
The aforesaid points are only indicative. There may be other factors that may be relevant for identification of a contrarian investing opportunity.
Contrarian Investment: Selection Criteria
Economic Moat
• Market leadership position in categories they operate.
• Dominant position in bottom-line and not only in top-line.
• Better Corporate Governance
• Companies with prudent debt and consistent shareholder’s return performance.
• History of stable earnings, relative high return ratios(i.e Return on Equity, Return on Capital
Employed). High free cash flow(i.e Operating Cash Flow) generation.
Thematic
• Companies likely to benefit from macro economic tailwinds i.e Government’s reforms.
• Reforms like Jandhan Yojana(Financial Inclusion), Bharatmala( Road construction Project),
DBT(Direct Benefit Transfer) or consolidation in industry leading to improvement in pricing
power within the industry.
• Depressed RoCE but could see sharp improvement led by higher returns on incremental capital
employed.
• Great execution capabilities of the companies.
16
The aforesaid points are only indicative. There may be other factors that may be relevant for identification of a contrarian investing opportunity.
Shift due to policy change
• Companies having large distribution network vs. regional distribution.
• Superior Quality of Product.
• Better Tax Compliance
• Economies of Scale.
Mean Reversion
• Companies going through rough patch. Depressed earnings, Negative near term outlook.
• RoEs are in trough cycle but not a major balance sheet risk. (i.e. Low Net Debt/EBITDA)
• Significant gap between intrinsic value and market price of stock.
• Under invested sector/company.
Unorganized Organised
17
Contrarian Investment: Selection Criteria
The aforesaid points are only indicative. There may be other factors that may be relevant for identification of a contrarian investing opportunity.
Portfolio Strategy
ICICI Prudential PMS Contra Portfolio aims to provide long term capital
appreciation and generate returns by investing in underperforming
stocks or sectors, which are available at intrinsic valuations and are
expected to perform well in the long run.
To strike an appropriate balance of concentration and diversification
Portfolio Manager retains the flexibility to invest across market
capitalization and sectors.
A focused portfolio of
20-25 stock ideas
Investment Horizon :
4 Years & Above
Benchmark Index:
S & P BSE 200
Minimum Investment
Amount: Rs.
25,00,000
Key Features
The investment strategy, approach and the structure of the portfolio herein involves risk and there can be no assurance that specific objectives will be met under differing market conditions or cycles.
The investment strategy and the composition of the portfolio as stated herein is only indicative in nature and is subject to change within the provisions of the disclosure document and client
agreement without any prior notice to investors. Please refer to the disclosure document & client agreement for details and risk factors.
18
18
The investment process mentioned above are indicative in nature. There may be other investment process for stock selection.
Some of the Alpha Stories: Exposure in Aviation Sector
19
The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and portfolio may or may not have any future positions in these
stock(s)/Sector(s). Source: www.bseindia.com, Internal. Past Performance may or may not sustain in future. Portfolio as on month end. Further, the portfolio holding of the existing
portfolios managed by the Portfolio Manager mentioned above are the holding of the oldest client of the respective Portfolios. The actual portfolio composition or the transactions in
the portfolio shall vary from client to client. Please refer to the information available on the PMS portal to review the composition and transaction details in the portfolio.
50.0
60.0
70.0
80.0
90.0
100.0
110.0
120.0
InterGlobe Aviation Limited Spicejet Ltd S&P BSE 200
Concern: Rising Crude and Depreciating Currency Price Movement
High Crude and depreciating currency hit the
airline industry. Silver lining was Average
monthly passenger volume which was 21% yoy
since Jan-2015
Portfolio took an exposure in Interglobe Aviation
Ltd and Spicejet Ltd in month of Sept 2018.
~35%
~36%
60
62
64
66
68
70
72
74
76
45
50
55
60
65
70
75
80
85
90Brent Crude USD INR
Some of the Alpha Stories: Exposure in Asian Paints
20
High Crude and depreciating currency hit the
paint stocks.
60
62
64
66
68
70
72
74
76
45
50
55
60
65
70
75
80
85
90Brent Crude USD INR
Concern: Rising Crude and Depreciating Currency
Portfolio took an exposure in Asian Paints in month
of Sept 2018.
1100
1150
1200
1250
1300
1350
1400
1450
1500
Asian Paints Ltd
The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and portfolio may or may not have any future positions in these
stock(s)/Sector(s). Source: www.bseindia.com, Internal. Past Performance may or may not sustain in future. Portfolio as on month end. Further, the portfolio holding of the existing
portfolios managed by the Portfolio Manager mentioned above are the holding of the oldest client of the respective Portfolios. The actual portfolio composition or the transactions in
the portfolio shall vary from client to client. Please refer to the information available on the PMS portal to review the composition and transaction details in the portfolio.
75.0
80.0
85.0
90.0
95.0
100.0
105.0
110.0
115.0
120.0Kotak Mahindra Bank Ltd S&P BSE 200 S&P BSE Bankex
Some of the Alpha Stories: Kotak Mahindra Bank Ltd
21
Rising benchmark yields, Tightening liquidity,
concerns around NBFCs and regulatory issues
related to promoter’s holding.
6.6
6.8
7
7.2
7.4
7.6
7.8
8
8.2
8.4
G-Sec Yield
Portfolio took an exposure in Kotak Mahindra Bank
Ltd Ltd in month of Sept 2018.
The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and portfolio may or may not have any future positions in these
stock(s)/Sector(s). Source: www.bseindia.com, Internal. Past Performance may or may not sustain in future. Portfolio as on month end. Further, the portfolio holding of the existing
portfolios managed by the Portfolio Manager mentioned above are the holding of the oldest client of the respective Portfolios. The actual portfolio composition or the transactions in
the portfolio shall vary from client to client. Please refer to the information available on the PMS portal to review the composition and transaction details in the portfolio.
Some of the Alpha Stories: Active Weight Management
22
1.98
3.02
0.00
68
73
82
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
60
65
70
75
80
85
Sep-18 Oct-18 Nov-18
Holding (in %) Price
Ho
ldin
g (%
)
Pric
e
2.36
2.99
826
889
1038
1.00
1.50
2.00
2.50
3.00
3.50
800
850
900
950
1000
1050
1100
Sep-18 Oct-18 Nov-18
Holding (in %) Price
Ho
ldin
g (%
)
Pric
e
InterGlobe Aviation Ltd Spicejet Ltd
Asian Paints Ltd
Pric
e
Ho
ldin
g (%
)
Kotak Mahindra Bank Ltd
Pric
e
Ho
ldin
g (%
)
6.80 7.72 8.08 8.10
4.91
1.88
1142 1119
1234
1257
1256
1213
1334.5
1.00
3.00
5.00
7.00
9.00
1000
1050
1100
1150
1200
1250
1300
1350
1400Holding (in %) Price
2.43
4.84 5.03
3.12
5.95 5.88 4.96
1293
1230
1346
1373
1413
1405
1493
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
1200
1250
1300
1350
1400
1450
1500Holding (in %) Price
The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and portfolio may or may not have any future positions in these
stock(s)/Sector(s). Source: www.bseindia.com, Internal. Past Performance may or may not sustain in future. Portfolio as on month end. Further, the portfolio holding of the existing
portfolios managed by the Portfolio Manager mentioned above are the holding of the oldest client of the respective Portfolios. The actual portfolio composition or the transactions in
the portfolio shall vary from client to client. Please refer to the information available on the PMS portal to review the composition and transaction details in the portfolio.
The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and the portfolios may or may not have any future positions in these Stock(s)/Sector(s). Data as on 29th
Mar, 2019.
Current Positioning
Market Capitalization Break-up
The data mentioned above is of a benchmark client and data of an individual client may vary significantly from the above.
23
Top 10 Holdings
Stocks % to Net Assets
ITC Ltd 7.46
Asian Paints Ltd 4.96
S. P. Apparels Limited 4.77
Vedanta Ltd 4.75
SBI Life Insurance Company Limited 4.74
NTPC Ltd 4.58
Sun Pharmaceuticals Industries Ltd 4.09
ICICI Bank Ltd 4.02
IDFC First Bank Limited 3.72
Coal India Ltd 3.69
Large Cap,
78.2
Mid Cap,
9.8
Small Cap,
12
Portfolio Statistics
No of Stocks: 33
Top 5 Sectors: 69.5%
Top 10 holdings: 46.8%
PE Ratio (TTM): 17.47 PB Ratio (TTM): 2.16
Valuation Parameters
P/S Ratio (TTM): 1.58
Top 5 Sector Exposure
The data mentioned above is of a benchmark client and data of an individual client may vary significantly from the above. Valuation Parameters Source: ICICI Prudential PMS Contra Portfolio Factsheet
PE: Price to Earning. PB: Price to book, P/S: Price to Sales. The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and the portfolios may or may not have any
future positions in these Stock(s)/Sector(s). Data as on Mar 29, 2019. Past performance may or may not be sustained in future.
24
23.8%
15.7%
14.7%
7.9%
7.4%
Banks & Finance
Consumer Non-Durable
Metals & Mining
Auto
Textiles
Value rebased to INR 1,00,00,000. Data as on Mar 29, 2019. Past performance may or may not be sustained in future. The return mentioned above is the return of the oldest client of the portfolio.
Further, the portfolio value is re-based as and when applicable.
Portfolio Performance
INR 99,23,645
INR 1,15,04,100
1 Month (%) 3 Months (%) 6 Months(%) Since Inception (%)
ICICI Prudential PMS Contra Portfolio 8.51 9.84 17.28 16.45
S&P BSE 200 7.56 5.46 5.96 -0.76
The portfolio performance mentioned above is of benchmark client and the performance of an individual clients may vary significantly from the above.
25
8000000
8500000
9000000
9500000
10000000
10500000
11000000
11500000
12000000ICICI Prudential PMS Contra Portfolio S&P BSE 200
An Irrational
Market
Sentiment
Risk Factors & Disclaimers
Investing in securities involves certain risks and considerations associated generally with making investments in securities. The value of the portfolio investments may be affected
generally by factors affecting financial markets, such as price and volume, volatility in interest rates, currency exchange rates, changes in regulatory and administrative policies of the
Government or any other appropriate authority (including tax laws) or other political and economic developments. Consequently, there can be no assurance that the objective of the
Portfolio would be achieved. The value of the portfolios may fluctuate and can go up or down. The Stock(s)/Sector(s) mentioned in this material do not constitute any
recommendation of the same and the portfolios may or may not have any future positions in these Stock(s)/Sector(s).
The composition of the portfolio is subject to changes within the provisions of the disclosure document. The benchmark of the portfolios can be changed from time to time in the
future. The inability of the Portfolio Manager to make intended securities purchases due to settlement problems could cause the portfolio to miss certain investment opportunities. By
the same rationale, the inability to sell securities held in the portfolio due to the absence of a well-developed and liquid secondary market for securities would result, at times, in
potential losses to the portfolio. Please note that past performance of the financial products, instruments and the portfolio does not necessarily indicate the future prospects and
performance thereof. Such past performance may or may not be sustained in future. Portfolio Manager’s investment decisions may not be always profitable, as actual market
movements may be at variance with anticipated trends. The investors are not being offered any guaranteed or assured returns. The AMC may be engaged in buying/selling of such
securities. Please refer to the Disclosure Document and Client Agreement for portfolio specific risk factors.
Individual returns of Clients for a particular portfolio type may vary significantly from the data on performance of the portfolios as may be depicted by the Portfolio Manager from
time to time. This is due to factors such as timing of entry and exit, timing of additional flows and redemptions, individual client mandates, specific portfolio construction
characteristics or structural parameters, which may have a bearing on individual portfolio performance. No claims may be made or entertained for any variances between the
performance depictions and individual portfolio performance. Neither ICICI Prudential Asset Management Company Ltd. (the AMC) nor its Directors, Employees or Sponsors shall be
in any way liable for any variations noticed in the returns of individual portfolios.
The Client shall not make any claim against the Portfolio Manager against any losses (notional or real) or against any loss of opportunity for gain under various PMS Products, on
account of or arising out of such circumstance/ change in market condition or for any other reason which may specifically affect a particular sector or security.]
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An Irrational
Market
Sentiment
Risk Factors & Disclaimers
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The Portfolio Manager shall have the sole and absolute discretion to invest in respect of the Client’s investment in any type of security subject to the Agreement and as stated in the
Disclosure Document and make such changes in the investments and invest some or all of the Client’s investment amount in such manner and in such markets as it deems fit would
benefit the Client. The Portfolio Manager’s decision (taken in good faith) in deployment of the Clients’ account is absolute and final and can never be called in question or be open to
review at any time during the currency of the agreement or any time thereafter except on the ground of malafide, fraud, conflict of interest or gross negligence. This right of the
Portfolio Manager shall be exercised strictly in accordance with the relevant Acts, rules and regulations, guidelines and notifications in force from time to time.
By their nature, certain market risk disclosures are only estimates and could be materially different from what actually occurs in the future. As a result, actual future gains or losses
could materially differ from those that have been estimated. The recipient(s) alone shall be fully responsible/are liable for any decision taken on the basis of this material. All recipients
of this material should before dealing and/or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice. The
investments discussed in this may not be suitable for all investors. Financial products and instruments are subject to market risks and yields may fluctuate depending on various
factors affecting capital/debt markets. There is no assurance or guarantee that the objectives of the portfolio will be achieved. Please note that past performance of the financial
products, instruments and the portfolio does not necessarily indicate the future prospects and performance thereof. Such past performance may or may not be sustained in future.
Portfolio Manager’s investment decisions may not be always profitable, as actual market movements may be at variance with anticipated trends. The investors are not being offered
any guaranteed or assured returns.
In the preparation of this material the AMC has used information that is publicly available, including information developed in-house. Some of the material used herein may have
been obtained from members/persons other than the AMC and/or its affiliates and which may have been made available to the AMC and/or to its affiliates. Information gathered and
material used herein is believed to be from reliable sources. The AMC however does not warrant the accuracy, reasonableness and/or completeness of any information. For data
reference to any third party in this material no such party will assume any liability for the same. We have included statements/opinions/recommendations in this material, which
contain words, or phrases such as “will”, “expect”, “should”, “believe” and also PE ratios, EPS and Earnings Growth for forthcoming years and similar expressions or variations of
such expressions, that are “forward looking statements”. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties
associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, the
monitory and interest policies of India, inflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices, the performance of the financial markets in India and
globally, changes in domestic and foreign laws, regulations and taxes and changes in competition in the industry.
All data/information used in the preparation of this material is dated and may or may not be relevant any time after the issuance of this material. The Portfolio Manager/ the AMC
takes no responsibility of updating any data/information in this material from time to time. The Portfolio Manager/ the AMC (including its affiliates), and any of its officers directors,
personnel and employees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, exemplary, consequential, as also any loss of profit
in any way arising from the use of this material in any manner
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Thank You